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Oversight board urges more appraisal data before approving Dixon Fire Station short sale
Summary
Board members questioned a recent appraisal that valued the Dixon Fire Station property at $850,000 and urged the City of Dixon to provide lease and tax records or obtain a competing appraisal before any short-sale proposal is placed on a future agenda; some members recommended foreclosure as an option if taxing entities cannot be made whole.
The Solano Consolidated Oversight Board heard an update on the loan for the Dixon Fire Station property and pushed the City of Dixon to supply more documentation before approving any short sale.
Megan Calloway opened the item as an informational update and handed the floor to the city attorney. Angela Shrimp, appearing for the city, said the borrower obtained an appraisal dated 12/13/2024 and that "the appraisal valued the property air market value as $850,000." She explained the first lien balance is about $720,000 and the successor-agency obligation is junior, and described options under consideration: the city could assume the loan, foreclose, or negotiate a short sale that would require successor-agency and board approval.
Board members pressed the attorney on tenant and rent details. The restaurant tenant, identified in the appraisal as Rosemary's LLC, occupies roughly 4,579 square feet with reported annual rent of $39,600; the building's total footprint was described as about 7,100 square feet. The second floor houses a dental practice that is owner-occupied; the appraiser calculated a fair-market rent of $1.25 per square foot because no lease copy was provided.
Several members said the appraisal likely understates market income and value because the appraiser lacked lease and tax-return data. As one board member put it, referencing the reported valuation of $850,000, "if that building appraised for $850,000, I would eat it." Members recommended the city obtain leases and tax-return evidence, seek a competing or review appraisal, and return with that information before the board would consider approving a short-sale agreement. The item was informational only; no formal board action was taken today, and the city attorney and the borrower's counsel said they would continue discussions and may return with a proposal after the successor agency acts.
